Trade setup for June 9: NIFTY50 closes at 25,000 mark; will it breach the 2025 high?

Asian markets @ 7 am

• GIFT NIFTY: 25,167 (+0.27%)
• Nikkei 225: 38,122 (+1%)
• Hang Seng: 24,028 (+0.99%)

U.S. market update (June 6)

• Dow Jones: 42,762 (+1%)
• S&P 500: 6,000 (+1%)
• Nasdaq Composite: 19,529 (+1.2%)

NIFTY50

• Max call OI: 25,500
• Max put OI: 25,000
• (Ten strikes to ATM, June 12 expiry)

Taking weak global cues, the NIFTY50 index opened the June 6 session on a flattish note. However, the index soared immediately after the RBI policy announcement, where the RBI not only cut repo rate by 50 basis points but also cut CRR by 100 basis points. CRR was cut with the expectation of improved credit demand, which in turn would boost consumption in the economy.

As a result, NIFY50 surged 1%, breaching the 25,000 mark. The index surged with a highly positive market breadth, where out of 50 stocks,45 ended in green, indicating strong bullish sentiment. NIFTY50 breached the resistance zone of 24,850-24,900 on a closing basis, surpassing 25,000 with a strong bullish candle, advancing for the third consecutive session. For the upward rally to continue, charts indicate one more resistance in 25,080-25120 zone, which is very close. On the downside, if NIFTY50 reverses for profit booking, 24820 would act as support for now.

On the options data front, the 25,000 calls hold the highest open interest for the 12th June expiry, indicating a strong resistance at these levels. On the downside, the index holds the highest open interest at 25,000 puts, indicating strong support at these levels.

SENSEX

• Max call OI: 83,000
• Max put OI: 82,000
• (Ten strikes to ATM, June 10 expiry)

SENSEX too opened on a flat note but picked up in just one hour after the RBI policy announcement. Thereafter, SENSEX traded sideways but closed in green with a 1% gain, marking its third consecutive daily upbeat.

SENSEX has surpassed its resistance at 81,800 and has closed above the 82,000 mark. Going forward, the next immediate resistance is maintained at 82,500 and 82,700, which are near the immediate prior swing highs on the daily chart. On the downside, the support zone is seen at 80,640-81240.

On the options data front, the index continued to face heavy resistance at the 83,000 levels due to the highest open interest on the call side. On the downside, the 82,000 puts hold the highest open interest, indicating strong support for the current weekly expiry.

Stock scanner

• Long buildup: SHRIRAMFIN, BAJFINANCE, JSWSTEEL
• Top traded futures contracts: HDFC BANK FUT, BAJFINANCE FUT, BAJAJFINSV FUT
• Top traded options contracts: SBIN 850CE, SBIN 840CE

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